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Introduction to K-Nearest Neighbors (KNN)

Introduction to K-Nearest Neighbors (KNN)

K-Nearest Neighbors (KNN) is a supervised machine learning algorithm that can solve both classification and regression problems.

Unlike many algorithms that build a mathematical model during training, KNN makes predictions by comparing new data points with the most similar examples in the training dataset.

For regression problems, the algorithm predicts the output by calculating the average value of the K nearest neighbors.

Why KNN?

  • Easy to understand and implement
  • Works well for small and medium-sized datasets
  • Can be used for both regression and classification
  • Does not require complex model assumptions

In this project, KNN Regression is used to estimate future stock closing prices based on historical market behavior.